BNC profits up 46 percent

HARARE - Listed mining concern, Bindura Nickel Corporation (BNC), has posted a $2,23 million profit after tax in the half year to September representing a 46,8 percent increase from $1,18 million reported in the comparable period last year.

In a statement accompanying the results, BNC chairperson Muchadeyi Masunda said the increase in profits was due to some cost cutting measures.

“The increase was partly due to savings realised through various cost management initiatives,” he said.

The company reported increased profits despite suffering a significant decrease in gross profit of 2,3 percent owing to the increased cost of sales. Gross profit was $7,95 million down from $8,14 million. Cost of sales were $16,2 million up from $14,3 million.

“Gross profit decreased by 2,3 percent year on year in line with the increase in the cost of sales,” Masunda said.

The nickel producer did not declare a dividend for the period under review, the chairperson said that “it is not feasible to declare a dividend”.

The mining company enjoyed a stellar safety performance during the period under review recording one million fatality free shifts. The chairperson said the company takes safety very seriously and has no tolerance to accidents.

“The board and management take safety very seriously, given the inherently hazardous nature of mining. We have a zero tolerance to accidents,” he said.